The IRR method assumes that cash flows are reinvested at:

Name: The IRR method assumes that cash flows are reinvested at:
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Question

Quizplus · Accepted Answer

The IRR method assumes that cash flows generated by the investment are reinvested at the actual internal rate of return. This assumption provides an accurate calculation of the project's profitability, as it considers the time value of money and reflects the actual return earned by the project's cash flows. Therefore, choice A is the best answer.

The IRR Method Assumes That Cash Flows Are Reinvested At